On Wednesday, U.S. tech stocks sold off as a surge in bond yields weighed on sentiment. Investors dumped stocks with stretched valuations. The weakness has continued into Europe today and, judging by the price action on the major indices, we could be heading towards some volatile times.
The New Zealand dollar will remain in focus after trading on Wall Street ends this evening, as Statistics New Zealand releases the latest growth estimate. The nation’s GDP is expected to have expanded by 0.8% in the fourth quarter of 2017 compared to 0.6% in Q3. If the data beats expectations then the kiwi, which has been outperforming her peers, could further extend its gains.
It is going to be a very important week and a half for the Euro/British pound (EUR/GBP) currency pair. The popular currency cross has managed to bounce back after a two-week drop when traders responded to the surprisingly strong improvement in UK data.